[Code of Federal Regulations]

[Title 7, Volume 15]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR3560.62]



[Page 491]

 

                          TITLE 7--AGRICULTURE

 

     CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE

 

PART 3560_DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS--Table of Contents

 

               Subpart B_Direct Loan and Grant Origination

 

Sec. 3560.62  Technical, legal, insurance, and other services.



    (a) Legal services. Applicants must have written contracts for any 

legal services that are to be paid out of Agency loan funds.

    (b) Title clearance. Applicants must obtain title clearance in 

accordance with the provisions of 7 CFR part 1927, subpart B applicable 

to title clearance, which would include title insurance or title 

opinion, unless the loan applicant is leasing the property or is an 

organization or an individual with special title or loan closing 

problems, in which case title clearance and related legal services will 

be obtained in accordance with procedures approved by the Agency.

    (c) Architectural services. Applicants must obtain a written 

contract for architectural services in accordance with the provisions of 

7 CFR part 1924, subpart A.

    (d) Insurance. Applicants must have property and liability coverage 

at loan closing as well as flood insurance, if needed. Fidelity coverage 

must be in force as soon as there are assets within the organization and 

it must be obtained before any loan funds or interim financing funds are 

made available to the borrower. At a minimum, applicants must meet the 

property, liability, flood, and fidelity insurance requirements in Sec. 

3560.105.

    (e) Surety bonding. Applicants must comply with the surety bonding 

provisions of 7 CFR part 1924, subpart A.